CHAPTER 437B
REGULATION OFMOTORVEHICLEREPAIRS
SECTION
437B-1 Definitions
437B-2 Applicability of chapter
437B-3 Motorvehicle repair industry board
437B-4 Powers and duties of board
437B-5 Repealed
437B-6 Repealed
437B-7 License required
437B-7.5 Requirements for licensing of repair dealer; inspection
437B-8 Powers to classify and limit license
437B-9 Fees: application; biennial renewals; license; restoration
437B-10 Certified repair dealer
437B-11 Prohibited practices
437B-11.2 Repealed
437b-11.3 Aiding or abetting
437B-11.4 Repealed
437B-11.5 Advertising
437B-12 Enforcement
437B-12.5 Cumulative penalties
437B-13 Invoices; supplying crash parts or used parts; customer's copy
437B-14 Return of replaced parts; exceptions
437B-15 Estimate for labor and parts
437B-16 Records required; inspection
437B-17 Sign required concerning board; notice to customer
437B-18 Repealed
437B-19 Jurisdiction of circuit court; procedure
437B-20 License condition precedent to lien
437B-21 Civil action
437B-22 Failure to comply with chapter; misdemeanor
437B-23 Certification program
437B-23.5 Apprentices and helpers
437B-24 Certification required for mechanics prior to licensure
437B-25 Repealed
437B-26 Bond required to work on salvaged, wrecked, or dismantled motor vehicles;
forfeiture
§437B-1 Definitions. As used in this chapter:
"Board" means the motorvehicle repair industry board.
Amended 798 1
"Certified mechanic" is a motorvehicle mechanic who has successfully passed the certification
tests in any or all of the certification specialties set forth in this chapter.
"Chlorofluorocarbon" or "CFC" means any member of the family of substances containing
carbon, fluorine, and chlorine, including, without limitation, those compounds known as CFC-11,
CFC-12, CFC-13, CFC-14, CFC-113, CFC-114, CFC-115, CFC-116, CFC-500, CFC-502, and
CFC-503, and any combination or mixture containing any of these chlorofluorocarbon compounds.
"Crash parts" means motorvehicle replacement parts, either sheet metal or plastic, which
constitute the visible exterior of the vehicle, including inner and outer panels, and which are repaired or
replaced as the result of a collision.
"Department" means the department of commerce and consumer affairs.
"Hydrochlorofluorocarbon" or "HCFC" means any member of the family of substances
containing hydrogen, carbon, fluorine, and chlorine, including, without limitation, those compounds
known as HCFC-22 and HCFC-123, and any combination or mixture containing any of these
hydrochlorofluorocarbon compounds.
"Licensed mechanic" means a motorvehicle mechanic who has been licensed in accordance
with this chapter.
"Mobile air conditioner" means an air conditioner designed for installation in a motor vehicle.
"Motor vehicle" means any passenger car, truck, truck tractor, motorcycle, or motor scooter, as
defined in section 286-2, and the integral parts thereof.
"Motor vehicle mechanic" means any person whether self-employed or employed by another,
who, for compensation, engages in the diagnosis or repair of malfunctions ofmotor vehicles, and may be
classified as "intermediate" or "journey worker" as the terms are commonly used in the motorvehicle
repair industry.
"Motor vehicle mechanic helper" means any person who, for compensation, engages in the
diagnosis or repair of malfunctions ofmotor vehicles under the supervision of a licensed motorvehicle
mechanic.
"Motor vehicle repair dealer" means any person who is, or has in the person's employ, a motor
vehicle mechanic licensed under this chapter and who, for compensation, engages in the business of
diagnosing or repairing malfunctions ofmotor vehicles.
"Refrigerant recovery and recycling equipment" means a device used to recover and to purify
CFCs for later reuse.
"Repair ofmotor vehicles" means all maintenance of and modifications and repairs to motor
vehicles, including the rebuilding or restoring of rebuilt vehicles as defined in section 286-2, but
excluding repairing tires, changing tires, lubricating vehicles, installing light bulbs, batteries, windshield
wiper blades, and other minor accessories, cleaning, adjusting, and replacing spark plugs, replacing oil
and air filters, and other minor services, which the board by rule determines may be performed by
persons without the skills and knowledge required ofmotorvehicle mechanics and helpers. No service
shall be designated as minor, for purposes of this section, if the board finds that performance of the
service requires mechanical expertise, has given rise to a high incidence of fraud or deceptive practices,
or involves a part of the vehicle essential to its safe operation.
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§437B-2 Applicability of chapter. This chapter does not apply to:
(1) Employees of the county, state, or federal governments when carrying out the functions
of governmental employment; or
(2) Employees of a commercial or business enterprise who engage in the repair ofmotor
vehicles which are owned, maintained, and operated exclusively by such commercial or
business enterprise and which are not leased or rented to others; provided that
employees may voluntarily be licensed pursuant to this chapter.
§437B-3 Motorvehicle repair industry board. There shall be a motorvehicle repair
industry board consisting of seven members. Three members of the board shall be persons connected
with the motorvehicle repair industry and at least two of those members shall be motorvehicle
mechanics licensed under this chapter. The remaining four members shall not be connected with the
motor vehicle repair industry.
§437B-4 Powers and duties of board. In addition to any other powers and duties authorized
by law, the board, in accordance with this chapter and chapter 91 shall:
(1) Establish such qualifications for the licensing ofmotorvehicle repair dealers and motor
vehicle mechanics as may be necessary for the welfare of the public and the motor
vehicle repair industry; provided that no person shall be licensed as a motorvehicle
mechanic without first receiving certification as provided by this chapter;
(2) Inquire into the practices and policies of the motorvehicle repair industry and make
rules with respect to such practices and policies as may be deemed important and
necessary by the board for the welfare of the public and the motorvehicle repair
industry;
(3) Contract and cooperate with the University of Hawaii in developing and administering
the certification program provided for in this chapter;
(4) Adopt, amend, and repeal such rules not inconsistent with this chapter, as the board
deems appropriate for effectuating the purpose of this chapter and to ensure the welfare
of the public;
(5) Adopt rules pursuant to chapter 91 necessary to implement the provisions of this
chapter relating to CFCs; and
(6) Enforce this chapter and rules adopted pursuant thereto.
§437B-5 REPEALED.
§437B-6 REPEALED.
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§437B-7 License required. On or after January 1, 1976, it shall be unlawful for any person
to engage in the repair ofmotor vehicles for compensation without being licensed as a motorvehicle
repair dealer or motorvehicle mechanic in accordance with this chapter. Every
motor vehicle repair dealer shall be a motorvehicle mechanic or shall have at least one motorvehicle
mechanic in the dealer's employ. No motorvehicle mechanic shall engage in the repair ofmotor
vehicles unless that person is also licensed as a motorvehicle repair dealer or unless that person is in the
employ of a motorvehicle repair dealer.
§437B-7.5 Requirements for licensing of repair dealer; inspection. (a) Before a motor
vehicle repair dealer license is granted by the board, the applicant shall establish that the applicant is or
employs a full-time motorvehicle mechanic licensed with the board, and has a repair facility and the
equipment necessary to properly perform work in the specialty or area of certification for which
licensure is requested.
(b) The board may inspect an applicant's repair facility and equipment prior to licensing,
and may conduct subsequent inspections of repair facilities to verify continued compliance with
subsection (a).
§437B-8 Powers to classify and limit license. (a) The board shall adopt rules necessary to
effect the classification ofmotorvehicle mechanics in a manner consistent with the certification program
established by this chapter, and shall limit the motorvehicle repair activities of a licensee to those areas
for which the licensee is certified or licensed.
(b) An applicant may make application for [licensure] in more than one classification if the
applicant is certified for each classification and otherwise meets the qualification for [licensure] as
prescribed by the board. If the applicant is licensed for more than one classification, the applicant shall
pay the license fee but shall not be required to pay any additional license fee.
§437B-9 Fees: application; biennial renewals; license; restoration. (a) The fees for
each application, original biennial license, and renewal for the motorvehicle repair dealer and the motor
vehicle mechanic shall be as provided in rules adopted by the department pursuant to chapter 91. At
the time of license renewal, each licensee shall submit a completed renewal application and all applicable
fees, and shall demonstrate continued compliance with all license and certification requirements.
(b) Any motorvehicle repair dealer maintaining more than one motorvehicle repair facility
shall separately license each repair facility, providing the name of the full-time motorvehicle mechanic
for the facility, and pay a fee for each facility.
(c) The renewal fee shall be paid to the board on or before June 30 of each odd-numbered
year. Failure, neglect, or refusal of any licensee to pay the biennial renewal fee before the date shall
constitute a forfeiture of the license. Any license may be restored within one year after the date of
forfeiture upon compliance with the renewal requirements and upon written application and the payment
of the required fee plus an amount equal to fifty per cent thereof. Any licensee who fails to restore a
license within one year from the date of forfeiture shall reapply for a license as a new applicant.
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§437B-10 Certified repair dealer. A dealer is a licensed and certified motorvehicle repair
dealer if not less than fifty per cent of the mechanics employed by the dealer on a full-time basis are
licensed-certified mechanics.
§437B-11 Prohibited practices. In addition to any other grounds for disciplinary action
authorized by law, the following acts or omissions related to the repair ofmotor vehicles shall be
grounds for invoking the enforcement procedures of section 437B-12:
(1) Making or authorizing in any manner or by any means whatever any statement written or
oral which is untrue or misleading, and which is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading;
(2) Causing or allowing a customer to sign any work order that does not state the repairs
requested by the customer or the automobile's odometer reading at the time of repair;
(3) Failing or refusing to give to a customer a copy of any document requiring the
customer's signature, as soon as the customer signs the document;
(4) Any other conduct that constitutes fraud;
(5) Conduct constituting gross negligence;
(6) Failure to comply with this chapter or rules adopted pursuant to it;
(7) Any wilful departure from or disregard of accepted practices or professional standards;
(8) Making false promises of a character likely to influence, persuade, or induce a customer
to authorize the repair, service, or maintenance of a motor vehicle;
(9) Having repair work subcontracted without the knowledge or consent of the customer
unless the motorvehicle repair dealer, mechanic, or apprentice demonstrates that the
customer could not reasonably have been notified;
(10) Conducting the business ofmotorvehicle repair in a place other than stated on the
license except that mobile repair facilities may be permitted if the license so indicates;
(11) Rebuilding or restoring of rebuilt vehicles as defined in section 286-2 in such a manner
that it does not conform to the original vehicle manufacturer's established repair
procedures or specifications and allowable tolerances for the particular model and year;
(12) Subcontracting, recommending, or referring motorvehicle repair work to, or in any way
assisting, a motorvehicle repair dealer or mechanic whose license or certification is not
in full compliance with this chapter;
(13) Failure to directly supervise a motorvehicle mechanic apprentice/trainee or motor
vehicle mechanic helper;
(14) Servicing mobile air conditioners without using refrigerant recovery and recycling
equipment that is certified by Underwriter Laboratories, Incorporated or was in use by
the motorvehicle repair industry prior to December 31, 1989;
(15) Performing service on any motorvehicle or mobile air conditioner after January 1,
1994, without successful completion of an appropriate training course
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in the recovery and recycling of CFC and HCFC refrigerants, which included instruction
in the proper use of refrigerant recovery and recycling equipment that is certified by
Underwriter Laboratories, Incorporated; and
(16) Violating chapter 342C.
§437B-11.2 REPEALED.
§437B-11.3 Aiding or abetting. Aiding or abetting an unlicensed person to evade this
chapter or knowingly combining or conspiring with an unlicensed person, or allowing one's license to be
used by an unlicensed person, or acting as agent or partner or associate, or otherwise, of an unlicensed
person with the intent to evade this chapter, shall be a misdemeanor.
§437B-11.4 REPEALED.
§437B-11.5 Advertising. No motorvehicle repair dealer shall advertise unless it holds a valid
motor vehicle repair dealer license issued under this chapter. Advertisement includes, but is not limited
to, the issuance of any card, sign, or device to any person, the causing, permitting, or allowing of any
sign or marking on or in any building or structure, or newspaper or magazine, or directory under the
listing ofmotorvehicle repair dealer, or broadcasting by airwave transmission which relates to the motor
vehicle repair business.
§437B-12 Enforcement. (a) In addition to any other actions authorized by law, in
accordance with chapter 91, the board may fine, suspend, revoke, or refuse to renew the license of a
motor vehicle repair dealer or mechanic for any violation of this chapter or rules adopted pursuant
thereto. The board may also order restitution as provided in subsection (c).
(b) Any fine that is imposed shall be not less than $100 nor more than $2,500 for each
violation.
(c) In lieuof or in addition to the fine imposed under this section, the board may require the
motor vehicle repair dealer or mechanic to make restitution to the customer. Restitution may be
imposed in lieuof a fine even though the amount may exceed the maximum fine set forth in subsection
(b).
(d) If a motorvehicle repair dealer operates more than one motorvehicle repair facility in
this State, the board pursuant to subsection (a) may only revoke, suspend, or refuse to renew the
license of the specific motorvehicle repair facility that has violated this chapter. The violation, or the
action by the board, shall not affect in any manner the right of the motorvehicle repair dealer to operate
the dealer's other motorvehicle repair facilities; provided that the board may suspend, revoke, or refuse
to renew the license for all motorvehicle repair facilities operated in this State by a motorvehicle repair
dealer upon a finding that the motorvehicle repair
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dealer has, or is, engaged in a course of repeated and wilful violations of this chapter, or rules adopted
pursuant thereto.
(e) Each:
(1) Mobile air conditioner serviced without using refrigerant recovery and recycling
equipment;
(2) Motorvehicle or mobile air conditioner serviced after January 1, 1994, without
successful completion of an appropriate training course dealing with the recovery and
recycling of CFC and HCFC refrigerants; and
(3) Violation of chapter 342C; constitutes a separate offense for which fines may be
imposed under subsection (b).
[§437B-12.5] Cumulative penalties. Unless otherwise expressly provided, the remedies or
penalties provided by this chapter are cumulative to each other and to the remedies or penalties
available under all other laws of this State.
§437B-13 Invoices; supplying crash parts or used parts; customer's copy. All work
done by a motorvehicle repair dealer, mechanic, or apprentice, including all warranty work, shall be
recorded on an invoice and shall describe all service work done and parts supplied. Service work and
parts shall be listed separately on the invoice, which shall also state separately the subtotal prices for
service work and for parts, not including the general excise tax, and shall state separately the tax, if any,
applicable to parts and service work. If any crash, used, rebuilt, or reconditioned parts are supplied,
the invoice shall clearly state that fact. If a part of a component system is composed of new and used,
crash, rebuilt, or reconditioned parts, the invoice shall clearly state that fact. One copy shall be given to
the customer and one copy shall be retained by the motorvehicle repair dealer.
[§437B-14] Return of replaced parts; exceptions. Upon request of the customer at the
time the work order is taken, the motorvehicle repair dealer, mechanic, or apprentice shall return
replaced parts to the customer at the time of the completion of the work excepting such parts as may be
exempt because of size, weight, or other similar factors from this requirement by rule of the board and
excepting such parts as the motorvehicle repair dealer, mechanic, or apprentice is required to return to
the manufacturer or distributor under a warranty arrangement. If the parts must be returned to the
manufacturer or distributor, the dealer, mechanic, or apprentice at the time the work order is taken shall
offer to show, and upon acceptance of the offer, shall show the parts to the customer upon completion
of the work, except that the dealer shall not be required to show a replaced part when no charge is
being made for the replacement part.
§437B-15 Estimate for labor and parts. (a) The motorvehicle repair dealer, mechanic, or
apprentice shall give the customer a written estimated price for labor and parts necessary for a
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specific job prior to commencement of the job. Such written estimated price need not be given if
waived in writing by the customer. No charge in excess of fifteen per cent of the estimated price, if the
estimated price is less than $100, or ten per cent of the estimated price, if the estimated price is in
excess of $100, shall be charged for parts and labor supplied in excess of the estimated price, without
the prior written or oral consent of the customer. Such consent shall be obtained at some time after it is
determined that the estimated price is insufficient and before the labor not estimated is performed or the
parts not estimated are supplied. This provision may be waived in writing by the customer, provided
that such waiver by its terms shall be effective only after the dealer or mechanic has made reasonable
efforts to contact the customer. The form and content of any waiver shall be as prescribed by rule of
the board. Nothing in this section shall be construed as requiring a motorvehicle repair dealer,
mechanic, or apprentice to give a written estimated price if the dealer, mechanic, or apprentice does not
agree to perform the requested service. A reasonable fee may be charged for making the estimate.
(b) If any crash parts manufactured by anyone other than the original vehicle equipment
manufacturer are to be supplied or installed, the estimate shall clearly state that fact and identify each of
those crash parts. In identifying the crash parts which are not manufactured by the original vehicle
equipment manufacturer, the motorvehicle repair dealer, mechanic, or apprentice may include
information on any applicable manufacturer's warranty and information about the part's compliance with
any certified testing program.
(c) No motorvehicle repair dealer, mechanic, or apprentice shall use crash parts which are
not manufactured or supplied by the original vehicle equipment manufacturer unless the owner of the
motor vehicle accepts the use of such parts and signs the estimate acknowledging the use and source of
the crash parts.
[§437B-16] Records required; inspection. Each motorvehicle repair dealer shall maintain
such records as are required by rules adopted by the board. The records shall be open for reasonable
inspection by the board or other law enforcement officials. All such records shall be maintained for at
least two years.
[§437B-17] Sign required concerning board; notice to customer. The board shall design
and approve of a sign which shall be placed in all motorvehicle repair dealer locations in a place and
manner conspicuous to the public. Such sign shall give notice that inquiries concerning service may be
made to the board and shall contain the telephone number of the board. The sign shall also give notice
that the customer is entitled to a return of replaced parts upon the customer's request therefor at the time
the work order is taken.
§437B-18 REPEALED.
[§437B-19] Jurisdiction of circuit court; procedure. The circuit court of the judicial circuit
in which any person carries on, or attempts to carry on, business as a motorvehicle repair
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dealer or acts or holds oneself out as a motorvehicle mechanic or motorvehicle mechanic apprentice in
violation of this chapter, or any rule made pursuant to this chapter, shall on application of the board,
issue an injunction or other appropriate order restraining such conduct.
The proceedings under this section shall be governed by the Hawaii Rules of Civil Procedure,
except that no undertaking shall be required, and the board shall not be required to allege facts
necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
§437B-20 License condition precedent to lien. No person required to be licensed under
this chapter shall have the benefit of any lien for labor or materials or the right to sue on a contract for
motor vehiclerepairs done by the person unless the person was licensed at the time the person
performed the contract.
[§437B-21] Civil action. Nothing in this chapter shall prohibit the bringing of a civil action
against a motorvehicle repair dealer, mechanic, or apprentice by an individual.
[§437B-22] Failure to comply with chapter; misdemeanor. Any person who fails to
comply with the provisions of this chapter is guilty of a misdemeanor.
§437B-23 Certification program. (a) The board shall contract with the University of Hawaii
to develop and administer a certification program for motorvehicle mechanics.
(b) The certification program shall provide for issuing a certificate to mechanics generally
skilled in the repair ofmotor vehicles and to mechanics who specialize in certain areas ofmotorvehicle
repair. A person may be certified as being generally skilled in the repair ofmotor vehicles, specially
skilled in one or more areas ofmotorvehicle repair, or both generally and specially skilled. Each area
shall be separately tested and certified. The program shall provide for apprenticeship leading to
certification as a mechanic. The program may be an apprenticeship program registered with the
department of labor and industrial relations in accordance with chapter 372. Nothing in this section or
chapter shall prevent a student in a course leading to certification from repairing motor vehicles so long
as the student is supervised by a mechanic.
(c) The certification test shall be approved by the board and if written, shall be given orally
at the request of the person being tested. Each application for certification shall be accompanied by a
nonrefundable examination fee as provided in rules adopted by the department pursuant to chapter 91.
(d) There shall be no limit on the number of times a person may apply for certification;
provided that any person failing the examination must wait thirty days before retaking the test.
(e) All persons who take and pass the certification test shall be awarded a certificate which
shall be posted in a prominent place at their place of business or employment and a patch
which may be worn on clothing apparel. The University of Hawaii shall design and procure the
certificate and patch.
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§437B-23.5 Apprentices and helpers. It shall be unlawful for any motorvehicle mechanic
apprentice/trainee or motorvehicle mechanic helper to assist a motorvehicle repair dealer or motor
vehicle mechanic unless the apprentice or helper works under the direct supervision of a licensed or
certified motorvehicle repair dealer or motorvehicle mechanic. All motorvehicle mechanic
apprentices/trainees and motorvehicle helpers shall be assigned to and shall be the responsibility of a
licensed or certified motorvehicle mechanic, provided that each licensed or certified mechanic shall
have assigned to the mechanic not more than a total of five apprentices/trainees or helpers. In the event
that a motorvehicle mechanic, who is assigned one or more motorvehicle mechanic
apprentices/trainees or motorvehicle helpers, is terminated from employment, the motorvehicle repair
dealer shall have thirty days to replace the motorvehicle mechanic in order to reassign the
apprentices/trainees or helpers.
§437B-24 Certification required for mechanics prior to [licensure]. (a) Except as
provided in subsection (b) below, every mechanic applying for [licensure] shall have passed the
appropriate certification test provided for in this chapter.
(b) Notwithstanding any provision of this chapter, any person who has been engaged as a
motor vehicle mechanic for a period of at least two years prior to January 1, 1976, and who has applied
for [licensure] as a motorvehicle mechanic under this chapter on or before June 30, 1976, shall not be
required to take the certification test prescribed in this chapter prior to [licensure].
§437B-25 REPEALED.
§437B-26 Bond required to work on salvaged, wrecked, or dismantled motor vehicles;
forfeiture. (a) Any motorvehicle repair dealer desiring to engage in the business of restoring or
rebuilding salvaged, wrecked, or dismantled vehicles shall submit to the board a performance bond,
with corporate surety satisfactory to the board. The amount of the bond shall be not less than $25,000
and the condition of the bond shall be the satisfactory rebuilding or restoration of salvaged, wrecked, or
dismantled vehicles.
(b) When the board finds that a licensee has wilfully departed from or disregarded accepted
practices of workmanship with respect to work performed under section 437B-11(11), the board may,
in accordance with chapter 91, order the forfeiture to the State of the performance bond submitted
under subsection (a).
(c) Failure, refusal, or neglect to maintain in full force and effect a bond shall cause the
automatic suspension of the license effective as of the date of expiration or cancellation of the bond.
The license shall not be reinstated until a bond as required under this section is received by the board.
Failure to effect a reinstatement of a suspended license within sixty days of the suspension shall
cause the license to be terminated, thereby forfeiting all license and biennial renewal fees. A
licensee may, within fifteen calendar days after receipt of notification of the license termination, request
an administrative hearing pursuant to chapter 91 to review the termination.
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.
diagnosis or repair of malfunctions of motor vehicles under the supervision of a licensed motor vehicle
mechanic.
" ;Motor vehicle repair dealer". supervision of a licensed or
certified motor vehicle repair dealer or motor vehicle mechanic. All motor vehicle mechanic
apprentices/trainees and motor vehicle